Both Coasts of Canada Enjoying Energy Sector Success

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

From Atlantic to Pacific, the Canadian energy sector is looking terrific. Developments on both coasts are showing ascendency in oil and natural gas.

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Bay du Nord Decision Expected Next Year

The energy sector in Canada got a lift on both coasts with the 100th delivery from the LNG Canada facility in British Columbia and a pending decision on the Bay du Nord oil field in the Atlantic.

About 20% of Canada's total value for exported goods globally came from exports of crude oil, refined petroleum products and natural gas last year. Industrial Info is tracking 49 grassroot projects in the Canadian oil and gas sector with a combined investment value of US$67.17 billion.

The largest by investment value is the Bay du Nord offshore development, with $12 billion from the Canadian division of Norwegian energy major Equinor. A report from The Canadian Press found Equinor in a message to investors said it would decide by early 2027 whether to move forward with plans for offshore Newfoundland and Labrador.

According to the report, Geir Tungesvik, an executive vice president at Equinor, said the basin holds at least 550 million barrels of recoverable reserves, nearly twice as high as the initial estimate of 300 million barrels.

Tapping BW Offshore for preliminary design work, Industrial Info Resources data find that Equinor would use a floating production storage and offloading unit (FPSO) to drill 40 development wells in the so-called Flemish Basin. Production could average 160,000 barrels per day (bpd) and would include as much as 1.2 million barrels in storage.

The Canada Energy Regulator reported that, in terms of percent, Newfoundland and Labrador is the fastest-growing province for oil production in the nation, with an annual increase last year of 15%, or 30,000 bpd. If sanctioned, Bay du Nord would be the first deepwater project in Canada and, at 310 miles from shore, the furthest of any other oil project of its kind globally.

LNG Canada Reaches Milestone

Elsewhere, following a visit to British Columbia from Prime Minister Mark Carney, the operators of the LNG Canada installation on the coast of the Pacific announced the 100th cargo since operations began.

"Our focus continues to be on safe and responsible operations as we progress towards our vision of becoming a world-class asset, and helping Canada to become a top 5 global LNG (liquefied natural gas) exporting nation," the company said Thursday on a message on its LinkedIn page.

LNG Canada started operations only last year, reaching 25 cargos by November shortly before it started operations from its second train. The facility, which already has offtake agreements with Japanese energy company JERA, among others, is part of a trade diversification spree steered by Prime Minister Carney.

Industrial Info finds the LNG Canada facility can produce 14 million metric tons of gas in the liquid form annually from two trains located in Kitimat, British Columbia. As of now, it's the only facility of its kind in North America that can deliver LNG from the Pacific Coast.

Fluor Corporation and its joint venture partner JGC Corporation earlier this month received a limited notice to proceed with the proposed Phase 2 expansion. The same team played a central role in the initial developments. LNG Canada will make a final investment decision (FID) on the expansion of its liquefied natural gas (LNG) production and export facility by the end of this year.

According to Industrial Info data, the proposed addition of two more liquefaction units--trains 3 and 4--has an investment value of US$12.5 billion.

By the Numbers

• 100 cargoes from LNG Canada
• 160,000 bpd from Bay du Nord

Key Takeaways

• Canadian energy developments coming in quick
• Both coasts starting to see success

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).